Insured Ten-Year Protection Plan [HUD] Law and Legal Definition
Pursuant to 24 CFR 203.200 [Title 24 Housing and Urban Development; Subtitle B Regulations Relating to Housing and Urban Development; Chapter II Office of Assistant Secretary for Housing Federal Housing Commissioner, Department of Housing and Urban Development; Subchapter B Mortgage and Loan Insurance Programs under National Housing Act and Other Authorities; Part 203 Single Family Mortgage Insurance; Subpart A Eligibility Requirements and Underwriting Procedures; Insured Ten-Year Protection Plans (Plan)], the term Insured Ten-Year Protection Plan or Plan means “an agreement between a homeowner and a Plan issuer which, among other things, contains warranties regarding the construction and structural integrity of the homeowner's one- to four-family dwelling covered by an FHA-insured mortgage. A Plan issuer may be a State, an insurance company, a warranty company, a Risk Retention Group as defined in [15 U.S.C. 3901(a)(4)(A)-(H)] (Supp. IV 1986), a builder, or by any other HUD-approved entity with the required insurance backing. A Plan must specify in its coverage contract the obligations and duties of the Plan issuer to the homeowner (or to the homeowner's successor in interest) with respect to the warranties covering the dwelling.”
